European Wax Center

The franchise fee is $45,000 for new franchisees, reduced to $36,000 for existing franchisees in good standing adding a location. A required $10,000 grand opening marketing package is also due at launch, bringing initial cash commitment to $55,000 before any construction begins.

Total investment of $328K–$837K is dominated by build-out costs. Real estate and leasehold improvements account for $120K–$450K — the wide range reflects the EWC model's preference for inline retail locations in high-traffic centers where tenant improvement allowances vary significantly. Furniture, fixtures, and equipment (waxing suites are individually fitted rooms) add $65K–$135K. Signage, technology, and initial inventory round out to another $47K–$90K. Three-month working capital of $31K–$82K assumes moderate ramp-up.

Ongoing fees total 11% of gross sales before local advertising: 6% royalty, 3% national brand fund, and 2% local advertising requirement. The technology fee of $310/month ($3,720/year) is relatively modest. The 3% brand fund is notably high — most personal services franchises charge 1–2% for national advertising. European Wax Center is investing heavily in national brand building, which benefits the system but is a real cash cost to franchisees.

At a hypothetical $500K annual revenue: - Royalty: $30,000 (6%) - Brand fund: $15,000 (3%) - Local ad requirement: $10,000 (2%) - Technology fee: $3,720 (fixed) - Total: $58,720 (11.7% of revenue)

European Wax Center does not make any financial performance representations in Item 19. The FDD explicitly states no earnings claim is made.

This is a significant gap. With 1,062+ locations, European Wax Center has extensive performance data across its system but has chosen not to share it. Franchisees are left to piece together earnings potential from conversations with existing operators.

From publicly available industry data and franchisee community discussions, waxing-only studios typically generate $300K–$700K in annual revenue at maturity, with membership models (recurring monthly subscribers) accounting for 30–50% of revenue at mature locations. Gross margins in waxing are high (services have minimal cost of goods) but labor intensity is significant — licensed estheticians are required by law in most states.

You must speak directly with a meaningful sample of current and former franchisees. Request a list of all franchisees from Item 20 and independently contact at least 15 before signing. Ask specifically about Year 1 and Year 2 revenue, membership conversion rates, and esthetician turnover.

European Wax Center is one of the fastest-growing personal care franchises in the U.S. The system grew from 847 franchised locations in 2022 to 1,062 in 2024 — adding approximately 215 locations in two years, or roughly 100+ new openings annually. Closure data for individual years is not fully captured, but the net unit count grew by 50 in 2024 alone.

At 1,062+ locations, European Wax Center has meaningful national brand awareness and a scale that allows for TV advertising and broad marketing spend. The 5 company-owned locations (maintained since 2022) serve as innovation and training centers. The system is expanding — territory availability is closing in major metros but secondary markets still have opening inventory.

The no-disclosure Item 19 is the loudest warning in this profile. In a system of 1,062 locations with years of operating history, choosing not to disclose performance data is an active decision. It may reflect concern about how median-unit economics would look to prospective franchisees, or it may simply be a legal conservatism choice. Either way, it shifts due diligence burden entirely onto you.

The 3% national brand fund is elevated for this category. Combined with 6% royalty, 2% local ad requirement, and the technology fee, your total fee burden at $500K revenue is approximately 12%. In a margin-sensitive service business, this is a meaningful headwind.

The build-out range is very wide ($120K–$450K for improvements alone). Location selection and lease negotiation are critical — poor location quality is the primary reason waxing studios fail to ramp, and high rent compounds the problem. The brand strongly influences site selection, but final economics depend on your specific deal.

Existing franchisee transfer fees of $15K–$25K make acquisitions of existing units somewhat expensive. If you're considering buying an established EWC rather than opening new, factor in this additional cost on top of any goodwill premium.